Report - Accounting for Managers
Added on 2020-05-28
11 Pages2793 Words128 Views
Running head: ACCOUNTING FOR MANAGERSAccounting for ManagersName of the StudentName of the UniversityAuthors NoteCourse ID
ACCOUNTING FOR MANAGERS1Table of ContentsIntroduction................................................................................................................................2Description of the Clients firm:..................................................................................................2Description of the Time-Driven Activity Based Costing and its features:................................3Difference between TDABC, ABC and Traditional costing system:........................................4Description of whether the TDABC is appropriate for Client company:..................................7Conclusion:................................................................................................................................8Reference List:...........................................................................................................................9
ACCOUNTING FOR MANAGERS2Introduction In the modern world of business notwithstanding the size whether the firm is big orsmall it needs that there should be a clear understanding of the managers regarding the cost. Itis necessary to have an understanding of the methods of costing as they would be better ableto locate the changes taking place in the trade whenever they originate (Hemmer and Labro2016). The present study takes into the considerations the TDABC along with theunderstanding of the essential features. The report will further focus on the ways which willdetermine the methods under which the TDABC is different from the ABC model costing andthe Traditional methods of ABC costing. The study will further assess the costing systemregarding the implementation of the model in the Adelaide Brighton Ltd. Description of the Clients firm: The Adelaide Brighton is regarded as the Australia’s leading company that is engagedin the construction of the materials and in the areas of lime manufacturing. Adelaide BrightonLtd is concerned with the manufacturing and the supplies of wide range of goods that isassociated with the construction of the infrastructure, processing of building materialsthroughout the territories of Australia (Adbri.com.au 2018). The chief activities of the firmincluded manufacturing, importation and delivery of the lime goods, cement, concrete goodsand premixed concrete. Adelaide Brighton has large base of operational facilities thatprompted the supply of materials to the customers and facilitated a well-organized productioncapacity in order to meet the demands of the customers throughout the country. This enabledthe organization to provide the supply of the packaged materials and the supply of thelogistics throughout the regions of Australia and Asia.
ACCOUNTING FOR MANAGERS3Description of the Time-Driven Activity Based Costing and its features: The Activity based methodology of costing is current viewed as the complete methodof costing however the model suffers from wide known amount of criticism for the approachundertaken with several such users of the ABC costing have stopped using this method(Prasad 2014). The actual process of ABC costing offers a superior system of costing thevariety of products and service however under the new model of Time Driven Activity BasedCosting method will have the ability of incorporating the large amount of variations andcomplications by offering the improved quality of information minus the restrictions linkedwith the scheme of ABC costing.The customers of modern day largely place their focus on the business discoveries bygenerating and offering the wide range of products which largely offer their support to the bigorder entry and channels of tracking the order at numerous level of technical support.According to the words of Velasquez, Suomala and Järvenpää (2015), there is an increase inthe total number of customers. These customers require an appropriate management ofcustomers data along with the administration of profit generated by them. The ABC method of costing has attracted the attention of distinguished costingmethodology among the products that ranges from upper limit, custom and standard products(Hald and Thrane 2016). The system of TDABC helps in offering better informationconcerning the earnings and the frequency of profits by demonstrating the differences in thecost among the consumers that are having lower demand and ease of service than those thatare having higher demand with complex customer preferences. Depending upon the time needed in performing the activity the method of TDABC isbetter able to recognize the sum of every unit or procedure together with the allocation of costto the resource group. As stated by Lanen (2016), it is noted that the demand for TDABC can
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